Polymarket and other prediction platforms driving oil market, traders say
📖 Full Retelling
<p>Datafeeds from platforms being used to create algorithms that determine multimillion-dollar trades on global market</p><p>Energy traders say online betting platforms are directly driving the global oil market as they increasingly rely on anonymous prediction markets to determine multimillion-dollar trades.</p><p>Market experts have said that datafeeds from prediction platforms such as Polymarket are being used to create the algorithms that influence trading in th
Entity Intersection Graph
No entity connections available yet for this article.
Original Source
Polymarket and other prediction platforms driving oil market, traders say Datafeeds from platforms being used to create algorithms that determine multimillion-dollar trades on global market Energy traders say online betting platforms are directly driving the global oil market as they increasingly rely on anonymous prediction markets to determine multimillion-dollar trades. Market experts have said that datafeeds from prediction platforms such as Polymarket are being used to create the algorithms that influence trading in the global Brent crude futures market. The “widespread” use of Polymarket in oil futures trading has emerged amid concerns that anonymous account holders may be using insider knowledge to place bets. Energy traders have raised concerns that the platform could also be used to influence pricing in the global oil market. One energy trader said Polymarket had become the best predictor of the oil market’s direction since the US-Israel war with Iran triggered a global oil crisis, making it an essential part of the algorithms used to determine trades. “We’ve seen very large bets going on minutes before a major announcement comes up. The speculation is that someone on the inside has loaded up their crypto account to make some quick money on a bet,” the trader said. The growing influence of Polymarket on oil pricing means betting by a relatively small number of anonymous users can play an outsized role in influencing the oil market – where far larger financial windfalls are possible, they added. Ajay Parmar, the head of oil trading at ICIS, a market intelligence agency, said the betting platform was “having an increased impact on many markets now” and this would “increasingly become the case going forward”. “Betting markets do have a long history of strong prediction accuracy and since Polymarket is in the ascendancy, traders are indeed increasingly turning to it for market indicators,” Parmar said. Tim Skirrow, a longtime oil trader and the head of derivati...
Read full article at source